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Salter Group Client Case Studies

Case Study: Capital Market Services


Collateral Valuation Opinion and Transaction Support


Our Client

A global investment and merchant bank (the "IB") had recently acquired, in partnership with a Canadian operating business, a billion-dollar publicly-traded North American manufacturer/distributor.

Situation

The partners desired to sell a portion of the non-core assets for strategic reasons, and requested that we assist the IB in (i) developing forecast and valuation indications for the non-core assets, (ii) identifying the likely buyers, (iii) preparing the internet data room, (iv) facilitating discussions with the potential buyers, and (v) responding to all buyer inquiries regarding our forecasts and value indications for the assets. In order to maximize the prospects for a successful sale, our client allowed us to be hired by all prospective buyers in order to facilitate their due diligence and support their efforts to secure the requisite financing to close the transaction.

Key Issues/Services

  • Developing credible forecast and valuation measures for use by the partners, the IB and the prospective buyers in negotiating the terms of the transaction
  • Preparing supplemental analyses requested by certain interested buyers
  • Disclosing our scope of services and our unique role in the transaction to all transaction participants, and performing our services in accordance with strict internal protocols, in order to (i) ensure that the seller, all buy-side clients, the winning bidder and the winning bidder's financial sponsor remained confident in, and were comfortable in relying upon, our valuation opinions due to our reputation for independence and our objectivity in the transaction, and (ii) enhance market efficiencies in facilitating the closing of the transaction
  • Assisting the winning bidder, its investment banker and their attorneys in devising structuring elements to mitigate acquisition and lending risk


The Salter Group's Role & Outcome

  • One of our buy-side clients acquired the assets with strong support from a large bank syndicate.
  • We rendered valuation and/or collateral valuation opinions for the benefit of (among others) the seller, the buyer and the senior lenders.


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